Social Security System Law no. 40/2004

Social Security System  Law no. 40/2004

Social Security System as stipulated in Law no. 40/2004 is social security in the form of social insurance and social assistance or a combination of both . Social insurance means every person who works and who employ other people , whether in formal or informal sector as long as he is able to compulsory mengiur each month in accordance with a certain percentage for social security .

 While the social assistance means the government will provide tuition assistance for the poor or people can not afford . The point SJSN must ensure that all people be it civil , formal or informal workers , farmers , fishermen , small traders and so get the benefit (benefits ) are equal to social security, which means both live in dignity .

National Social Security covers health insurance , life insurance , accident insurance , old age insurance and pension guarantees . The National Social Security Act established eleven principles that became the reference and the foundation in carrying out this national social security system , namely

1. Mutual cooperation. Mutual inter - participant with the obligation to pay dues ( which helps high-income low income , who are able to help the less fortunate , which helps low-risk high-risk , healthy and helping the sick ) .

 2. Nonprofit . Management is essential to providing benefits to participants , and not merely the commissioner who usually come from the government .

3. Openness . Information should be easily accessible to all residents .

 4. Prudence. Carefully executed , thorough , safe and orderly .

 5. Accountability . Must be accurate , and reliable .

6. Portability . Guarantee sustainable development in all regions of Indonesia . Principle, participants should always be safe (security ) whenever and wherever he is in the jurisdiction of Indonesia . Participants who change jobs or relocate residence in the territory of the Unitary Republic of Indonesia
should always receive the benefit .

7. Participation is mandatory . The entire population into Social Security participants gradually.

8. Trust fund . Funds collected from participant contributions are deposited ( rather than income is not the budget) to the Administering Agency for Social Security to be managed as well as possible for the welfare of participants .

9. Fund management results . The result is returned to the interests of participants .

10. Social insurance . Rich and poor , healthy, sick , young and old ,low and high risk are all entitled to social security .

11. Equity . The similarity in obtaining services .

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